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Problem (10 points). The Torrington Academy is a private, nonprofit school that follows FASB standards of accounting and reporting. For the year ending June 30,

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Problem (10 points). The Torrington Academy is a private, nonprofit school that follows FASB standards of accounting and reporting. For the year ending June 30, 20X5, the school had the attached transactions. REQUIRED: Using the attached forms, prepare general journal entries, in proper form. to record the attached transactions. Omit explanations. Use the letter of the transaction as the date. TORRINGTON ACADEMY SUMMARY TRANSACTIONS FOR YEAR ENDING JUNE 30, 20X5 Cash contributions were received as follows. $ 1.200.000 500.000 For any purpose desired by school For salary supplements for school faculty For any purpose desired by school in the next fiscal year For construction of a new auditorium To be permanently invested, with the income to be used as desired by the school 300.000 600.000 700,000 (b) The school expended $400,000 of the $1.200.000 from (a) above for school furniture. They are considered unrestricted assets. @) The school expended the $500.000 for salary supplements as directed by the donor in (a). The school's policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted. (d) The $300,000 for next fiscal year purposes was retained for use next year, as directed by the donor. It was invested in short term investments. (e) $550,000 was expended for the construction of the new auditorium. School policy is to record all plant as unrestricted. (1) The $700,000 in (a) above was invested permanently, as directed by the donor, and in the year ended June 30, 20X5, earned $16.000, none of which was expended. TORRINGTON ACADEMY GENERAL JOURNAL FOR YEAR ENDING JUNE 30, 20X5 Explanation Date Debit Credit TORRINGTON ACADEMY GENERAL JOURNAL FOR YEAR ENDING JUNE 30, 20X5 Explanation Date Debit Credit

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